The Higg Index, some unhealthy press, and the potential of blockchain know-how

The worldwide attire provide chain is among the most advanced of any trade. It has been reported that one T-shirt can journey 1000’s of miles earlier than a buyer purchases it, expertly proven on this KQED presentation. However these quite a few worldwide stops alongside the provision chain result in a holistically unsustainable and globally spanning trade. Every thing from environmental inefficiencies to human labor abuses can plague the provision chain for that one T-shirt.

That is the place the Higg Index comes into play.

Created by the Walmart- and Patagonia-sponsored Sustainable Attire Coalition (SAC) in 2012, Higg (the official identify of the enterprise) turned an impartial software program firm in 2019. It collects and quantifies knowledge concerning textile manufacturing and provide chains from any attire firm keen to share, compiling the knowledge in a single place (the Higg Index) with the intent of making a world customary for efficient and environment friendly textile manufacturing. A normal based mostly on certifiable data that clearly addresses useful resource use, labor fairness and environmental impression is desperately wanted within the unregulated and unpredictable attire trade. 

However previously few months, the Higg Index has come underneath scrutiny for its lackadaisical strategy to environmental impacts of artificial fiber manufacturing and the unimpeded misrepresentation of its knowledge by manufacturers. It’s even been criticized for “trivializing the quantity of change that the style trade must take to turn into sustainable.”

The Higg Index is an instance of a well-intentioned idea struggling to stay the touchdown. Its critics fault the index for not absolutely addressing the systemic change that just about everybody agrees is required all through each stage of the attire trade. And but, for higher or for worse, Higg stays the perfect catalyst of this transformation. Elevated visibility of the needlessly wasteful world trend provide chain is step one. The one query is, the best way to proceed?

The reply, like every little thing else throughout the sustainability sector, is: “It’s difficult.”

The obvious response is to make the environmental and societal impacts of every stage of the provision chain seen (precisely what Higg got down to do) to all stakeholders, thus enabling the market to reward those that meet its requirements and punish those that don’t. Clients would cease buying merchandise that come from corporations with problematic provide chains, subpar corporations would change or die, and the style trade would turn into extra sustainable. 

Every thing from environmental inefficiencies to human labor abuses can plague the provision chain for that one T-shirt.

At the very least, that’s the speculation of change. Manifesting that utopian future requires digging into these provide chains and rising with correct knowledge — a job confirmed to be simpler stated than executed.

That is the place blockchain enters the chat.

To make sure that comfortable T-shirt arrives on time and able to go, a rising variety of attire corporations are using the usage of blockchain know-how. Finest described as a decentralized ledger that gives visibility of the product at each cease of its journey, blockchain serves as a distant and safe log of any form of data. For instance, such visibility can let a distributor know if there’s a holdup or different drawback within the provide chain. The distributor can then alter accordingly, decreasing buyer fallout and unfavourable financial impression.

However what in case your provide chain is made up of 1000’s of small designers, cutters, sewers, dyers, finishers and different companies? The complexity can develop manifold, though there are answers. 

Walmart, for instance, makes use of blockchain to trace its leafy inexperienced and bell pepper provide chains, which incorporates 1000’s of small farmers world wide. Tejas Bhatt, senior director of Walmart’s world meals security innovation crew, defined to me the benefit of the immutable nature of blockchain knowledge: “Suppliers are much more cautious in regards to the accuracy of the info they put onto the blockchain as a result of it can’t be retroactively up to date.” Bhatt stated that Walmart aimed to scale back human error by “verifying that the digital footprint that [Walmart] sees on the blockchain truly matches the bodily footprint of the product as its flowing by way of the provision chain,” by using automation.

Walmart has even created an answer for suppliers that lack the monetary and human capital to combine blockchain. Bhatt and his crew labored with every provider on the capability particular to their operational functionality. Smaller suppliers, for instance, can use Excel spreadsheets versus a costlier counterpart pointless for that provider’s dimension. Fairly than try and combine a sophisticated course of into an organization that may’t help the know-how, Walmart works to create a scaled, digitized knowledge set that might simply add into the chain with out exceeding financial limitations. 

And though this instance is particularly rooted in produce, Bhatt is optimistic that “whereas the Walmart mannequin particularly” could not translate to trend, blockchain typically can most positively make the soar from one trade to a different.

However Higg isn’t one firm centered on one product’s provide chain. As an alternative, Higg endeavors to catalog all environmental and societal inputs alongside each step of the whole world trend trade’s 1000’s of provide chains after which simplify that knowledge into clear trade benchmarks. 

Blockchain will help simplify this course of.

And it’s a transfer the corporate appears to be contemplating. James Schaffer, chief technique officer at Higg, instructed me, “[Higg] has plenty of fronts of technological innovation underway, a few of which pertain to this new technology of digital traceability corporations.” Whereas he wouldn’t go into any additional element, he agreed with the critics’ name for “a lot better governance and high quality assurance on each single piece of knowledge out and in of the system.”

The aforementioned critiques leveled at Higg are legit and deserve considerate and deliberate motion and responses. No firm ought to be capable of wield Higg’s knowledge out of context with out severe repercussions from the info’s origin firm, and the environmental impression of artificial fibers (equivalent to these used to create vegan leather-based) ought to be scrutinized and clearly labeled as reliant upon the petroleum trade. Condemning Higg, nevertheless, for these fumbles as a substitute of serving to it to maneuver ahead doesn’t additional the last word objective of a sustainable world trend trade. 

Solely Higg itself can decide the way it intends to proceed. At present, SAC and Higg have paused the consumer-facing transparency program globally to handle the criticisms and redesign the method so clearly in want of an replace. Schaffer commented throughout our dialog: “I believe our [Higg’s employees and staff] hearts are actually in the fitting place, however we’re engaged on one thing that’s tremendous laborious. … And we simply need to have that trustworthy back-and-forth in order that we will genuinely enhance.” And, no matter whether or not you’re a Higg critic or loyal supporter, we will all agree with Schaffer’s sentiments.

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